Effect of missed mortgage payment

enthusiasticsaver

moatmeister wrote: »

I looked at it this way. I have struggle to keep up with the payments for ages in the vain hope I might be able to get a remortgage and this is the first time one has been late. £1000 available to cover 1x £1000 mortgage payment or 5 x £200 cred card minimum payments. Credit file looks better with just one late payment marker for mortgage rather than 5 late payment markers for cards

You are less likely to get a decent remortgage with a missed mortgage payment. Consequences of defaulting on your mortgage could mean they take legal action to repossess usually after 3 missed payments. Very little consequences on missing credit card pay,ents as they are unsecured. Your credit record will be affected by both.

Post an soa on the DFW forum for more precise advice on how to get out of your predicament.

Thrugelmir

moatmeister wrote: »

I looked at it this way. I have struggle to keep up with the payments for ages in the vain hope I might be able to get a remortgage and this is the first time one has been late. £1000 available to cover 1x £1000 mortgage payment or 5 x £200 cred card minimum payments. Credit file looks better with just one late payment marker for mortgage rather than 5 late payment markers for cards

Your existing debt levels, monthly commitments etc are also taken into account as part of the credit scoring (underwriting process). Late payments are a clear indication of financial stress. However you dress it up. Your outgoings exceed your income.

Seek advice and help. Before matters spiral out of control. National Debt Helpline is a free online service.

https://www.nationaldebtline.org/

jarshay

RADDERS wrote: »

If you can pay an amount that covers the payment that was missed plus an extra say £50 as you will not be a full months payment in arrears, this should not be reported to the credit agencies.

Is this true?

moatmeister

Yes im intrigued about that post by RADDERS too.

And to John_Jones, yes a sale of the house is possible but not straightforward. Other people involved and a bit like using a sledgehammer to crack a nut. I also feel I am being forced into it unnecessarily but might be the only realistic answer if the banks continue to refuse to lend. Thrugelmir has as usual summed things up very succinctly. Outgoings exceed income. The "debt" itself is manageable, its the interest that has spiraled out of control, was all at 0% now at 23 to 27%. I had hoped to remortgage and raise £60k and work this through myself and sort it properly. Even with £20k and some careful juggling, I feel I could kick start things and make enough difference to get everything back on track so I could work it down but its completely taken over my life and is making me ill. I dont mind paying back what I owe but I just feel they are making it increasingly impossible and forcing me into defaulting on them which I dont want to do. I'm at the end of my tether with it now so yes, I think it is time to take professional help.

getmore4less

Juggling the debt won't have solved the problems without proper financial analysis.

The "debt" itself is manageable, its the interest that has spiraled out of control, was all at 0% now at 23 to 27%

saying the debt is manageable is clearly not the case as it is the cost of servicing the debt that needs to be manageable and you don't seemed to have planned for that.

You need to post on the DFW board and get that financial analysis done ASAP.
https://forums.moneysavingexpert.com/forumdisplay.php?f=76

you should fill in this SOA as a start.
http://www.stoozing.com/calculator/soa.php

RADDERS

jarshay wrote: »

Is this true?

Yes it’s true, a report is made to the credit agencies if you are one month in arrears. If your payment for the month is £750 and your arrears are £700 then you are not one months in arrears.

Works the same when people overpay all year and then miss a payment at Christmas, over pay by £70 a month for eleven months and there will be enough to pay Decembers payment.

John_Jones

moatmeister wrote: »

I looked at it this way. I have struggle to keep up with the payments for ages in the vain hope I might be able to get a remortgage and this is the first time one has been late. £1000 available to cover 1x £1000 mortgage payment or 5 x £200 cred card minimum payments. Credit file looks better with just one late payment marker for mortgage rather than 5 late payment markers for cards

No, it really does not.

Is it time to sell the house, and start again? What is your plan to turn things around?

John_Jones

moatmeister wrote: »

I dont mind paying back what I owe but I just feel they are making it increasingly impossible and forcing me into defaulting on them which I dont want to do. I'm at the end of my tether with it now so yes, I think it is time to take professional help.

Who are you claiming is making things hard? It sounds as though you have simply been spending more than you earn for a long time, and gambling that something would happen to make it all OK again. No-one is forcing you to default, you have chosen to live recklessly, and the inevitable is now happening and you are approaching a crisis.

It is far harder to look at things rationally and find a solution if you start inventing conspiracies, and believing that this is not down to your own decisions.

Your actions got you here, it will be your actions that get you back out.

stevenhp1987

jarshay wrote: »

Is this true?

Yes.

If your agreement is, say £100pm and you are £99 in arrears it will be reported as OK Paid.

Credit agency guidelines state it must be a full payment down to be marked as one payment down. e.g. £100 arrears = 1 payment down as would £199 in arrears.

moatmeister

To John_jones - saying I live recklessly is an obvious but incorrect conclusion to jump to - yes i have made some bad decisions but who hasnt? In this case, it is more complicated than that however thanks for your input please keep it coming